Finding a local coin dealer is easy: just open the yellow pages or search Google for coin dealers and appraisers in your area and you will find a long list of names.
The trick is finding a dealer near you who has a high moral and ethical standard, who is respected by his peers in the numismatic field, who have a stable business, and who are experts in rare and collectible coins. As you can imagine, the placement of these search restrictions is a search field that makes the list much shorter.
Here are five questions to ask when choosing the right coin dealer:
Question number 1: Does the dealer have experience?
It is always recommended that investors and coin collectors learn most about their investments, but few of us have the time to devote ourselves to becoming an expert. Coin dealers are paid by an expert, so make sure they are alone. Especially with something complex and unpredictable, like buying or selling coins, it is imperative that the dealer knows how to determine the true value of the coin.
The dealer must be able to prove to you that they have extensive experience in the trading of coins. Before you start a deal, ask to see their credentials or portfolio and don’t be afraid to ask why they are interested in coins - are they collecting? What coins do they have? How did they start working in the field? Answers to such questions can tell a lot about their experiences.
Question number 2: How long will the dealer be?
Before you make a deal with a coin dealer, consider the stability of their business. You want the dealer to be there in the future, in case there is a problem with the coin, for example, if it turns out to be a fake. If this happens, will the dealer remain in the area to provide compensation?
Coin dealers often appear, but many of them end up in less than five years, leaving those who have done business with them helpless. Check whether the dealer has assets that suggest that his or her business should stay.
Question number 3: Is the dealer known among their peers?
A dishonest coin dealer will tell you something to get your business, so it’s very important that you check with other dealers or investors to see how others see them in their field. If the dealer is not respected by others in his own discipline, then it is probably not a reasonable decision to deal with them.
First, find out if the dealer is separate from the guild or a group of other dealers. Many of these groups are by invitation only, so only reliable dealers are involved.
Question number 4: Does the dealer have good ethics?
Before choosing a coin dealer, check their ethical and moral code, not only in their relationship with you, but also with other customers. If they do not treat another client fairly, then why do you expect to receive another treatment?
Ask the dealer what their ethical standards are and ask them to review in writing if possible. And, if necessary, see how they treat other customers or ask them. You can never be too careful when you trust someone with your investment.
Question # 5: Does the dealer provide you with safety in case you are derailed?
In the event of a worst and dispute between you and the dealer, it is important to have some protection. Sometimes lawsuits can be inevitable if both parties cannot agree, but this should be the last thing to do.
The cost of defending your case in court is expensive, and some people can afford it. Therefore, protect yourself by dealing with coin dealers who offer some protection against recourse in case of future disputes.
Finding a coin dealer is the easy part, but coin collectors and investors should take the next step to investigate who they are going to do business with before trusting the dealer for their rare coins.
The list of qualified coin dealers can be much shorter than the yellow pages, but as long as they have strong experience, respect, and ethics, you will be in good hands.
